Pago Pago, AMERICAN SAMOA — Both Governor Lolo Matalasi Moliga and Congresswoman Aumua Amata are applauding and thanking Congress for passing legislation that will restore a tax credit that contributes to American Samoa’s economic development efforts.

The American Samoa Economic Development Credit (ASEDC) is an important benefit available to companies such as StarKist, which operate manufacturing facilities in American Samoa. With passage of this legislation the credit, which expired January 1, 2018, will be restored and extended until January 1, 2021.

Governor Lolo specifically thanked the Chairman of the House Ways & Means Committee, Richard Neal of Massachusetts, and Senate Finance Committee Chairman Chuck Grassley of Iowa for including the ASEDC in a package of targeted tax provisions, which have expired or would soon expire. He has written to Chairmen Neal and Grassley several times and has been in regular communication with both men as well as other key Committee Members and Senate and House Leadership advocating for the restoration and extension of the ASEDC. Lolo also commended Amata for her efforts to convince her colleagues of American Samoa’s need for this credit.

In a press release, Amata noted, “Congress is extending the American Samoa Economic Development Credit, and that’s more good news for the stability of our local economy. This important policy has supported the long-term presence of jobs and commercial activity in American Samoa for years.”

“Thank you to Governor Lolo and his team for coordinating with us in Congress as we worked together with many people in DC and American Samoa,” continued Amata. “I appreciate Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX), who led this process in the House Ways and Means Committee, along with Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Ron Wyden (D-OR).”

Of the credit extension period, Amata said, “I favor multi-year extensions that would allow for better planning and stability, so I will continue to make that case in Congress, and work for this economic policy to continue in 2021 and beyond. American Samoa’s population and geographic factors create an economy here that is unique among U.S. states and territories, so this policy is absolutely necessary for our people and to diversify our economy.”

Gov. Lolo pointed to the ASEDC as “a very important tool in our efforts to retain manufacturing jobs at existing companies like StarKist as well as to convince other businesses to set up facilities in American Samoa.” He said, “This tax credit is a benefit that can make the difference for companies deciding to stay in or move to American Samoa. I applaud Congress for taking action to restore and extend the credit so that we can protect and hopefully increase the number of well-paying manufacturing jobs for the people of American Samoa.”

“In my communications with Chairmen Neal and Grassley and other key members of the United States Senate and House of Representatives I have made a strong case about the economic disadvantages that American Samoa faces because of various factors such as our location. I have impressed upon them repeatedly that tools like the ASEDC help level the playing field so that companies that choose to manufacture in American Samoa are able to compete effectively in the US and global marketplaces.”

In his most recent letter to Congressional leaders, Governor Lolo took strong issue with the assertion by tuna processor Chicken of the Sea, which was encouraging Congress to eliminate the ASEDC because it is nothing more than an unfair subsidy to StarKist. In that September letter he wrote:

“As I stated in my March 28, 2019 letter to you, American Samoa does not enjoy the economic benefits of a robust tourism industry or the presence of a military installation as do other territories. Our remote location also makes it more expensive to do business from American Samoa than from other islands in the region or from Asia, and the credit helps us reduce this competitive disadvantage as we seek to attract more businesses to the territory.

“Yes, StarKist is currently the single largest private sector employer on American Samoa and, as such, is an interest of which we are fiercely supportive. However, Chicken of the Sea International’s depiction of the 30A credit, as benefitting only StarKist could not be further from the truth. In fact, this credit is available to most companies that may consider siting facilities in our territory and, without it, we will be at an even worse competitive disadvantage than we currently are.”

The Governor stressed to Congress that if American Samoa is to reduce its dependence on the federal government, tools like the ASEDC must be made available.

The American Samoa Economic Development Credit was included in a tax extender package that was attached to a major budget bill that will fund the federal government through September 30, 2020. The House passed the bill on Tuesday and the Senate was expected to approve the bill on Thursday.  The President is expected to sign the bill into law.